MGM Casinos posts poor Q3 gambling profits

Casino Gambling giant, MGM Resorts International, saw shares drop by nearly 10% in one day to $12.65 each as worries resurfaced about trading in Nevada.

Las Vegas casinos have been hit hard in recent years due to the global financial crisis but there were signs that recovery was on the way. Now it looks as though MGM will soon be reporting Q3 losses to the stock market. Shares fell nearly 10% to $12.65, just about bang in the middle of the 52-week of $8.54 and $16.66.

MGM now hope to raise up to $595 USD by issuing 47 million new shares in order to attract investment outside the key shareholder, Kirk Kerkorian. Kerkorian's investment company, Tracinda Corp. owns 37% of MGM Resorts International stock.

Nevada has been suffering from poor economic climate and also greater competition from new Casinos in Singapore and Macau, as well as a the ongoing growth of online gaming.

Online gamblers are increasingly staying away from land based casinos and are playing their favourite Online Blackjack and Online Roulette games at home on the internet. This trend started in the US over 12 years ago, and is now following the same pattern in Australia where gamblers are choosing the laptops and iphones in preference to the TAB